Tuesday, May 31, 2011

If you employ an agent to act on your behalf (for our purposes this is usually a letting agent), anything they say or do in the course of your business is binding on you. When they speak or act, it is as if you speak or act.

Many landlords are surprised to find that their letting agent’s failings or promises can be exacted against them.

Tom Derrett is the Principal of Deposit Claim, an ex-adjudicator and an expert on the Deposit Protection Schemes. Tom helps landlords to claim money through the deposit protection schemes.

Tom is an experienced deposit protection adjudicator who was unhappy at having to decide a disproportionate number of cases against landlords when he felt that they could often have won if they had presented their case properly.
In a twist on the poacher turned gamekeeper scenario, Tom set up ADR Solution, a deposit protection consultancy, to provide landlords with the advice and support necessary to win deposit disputes, at an affordable cost.

A Leeds landlord, Martin Horsfall, has been fined £14,000 for not having the required licences for 4 rental properties sited in areas covered by selective licensing under the Housing Act 2004, Cross Green and East End Park.

Leeds City Council’s commented “This type of case is exactly why selective licensing was brought in. Landlords who consistently disregard the safety of their tenants and the need to hold a selective licence will be prosecuted."

April 2016: Landlords will not be able to refuse "reasonable requests" from tenants to make improvements to their property by using the Green Deal.

April 2018: Landlords will not be able to rent a house or business property that has less than an "E" energy efficiency rating. This deadline will ensure that 682,000 properties will be improved according to Department of Energy and Climate Change.

Below is a selection of the most popular buy-to-let mortgages currently available. For full information on these products, and all other buy-to-let mortgage schemes available to you, please visit www.propertyhawk.co.uk/mortgages.aspx to use the free online buy-to-let mortgage finder. If you would like to discuss your requirements with a member of the support team please telephone 029 2069 5446 or you can submit a quick enquiry directly to the team by filling in our online enquiry form.

Max LTV

Initial rate

Term

Reversionary rate

Completion fee

Booking fee

Early repayment charges

Incentives

80%

4.99% Fixed

Sep 30 2013

Lender's standard variable rate currently 4.99% for the remainder of the term

3.5% (min £595)

£0

5% of amount being repaid until 30/09/2013

No

80%

4.99% Disc.Tracker

2 Years

Lender's standard variable rate currently 5.49% for the remainder of the term

2.5%

£250

2% of original balance being repaid for 2 years

No

75%

4.99% Fixed

Jun 30 2013

Lender's standard variable rate (currently 4.60%) + 0.5% for the remainder of the term

£999

£99

5% of amount being repaid until 30/06/2013

Free valuation and free legals

75%

3.99% Disc.Tracker

2 Years

Lender's standard variable rate currently 5.64% for the remainder of the term

£2499

£250

No

No

70%

4.49% Fixed

Jul 31 2013

Variable rate of BBR + 4.45% for the remainder of the term

£1250

£245

4% of original balance being repaid until 31/07/2013

Free valuation and free legals for remortgages (properties valued up to £500,000).

70%

3.75% Disc.Tracker

2 Years

Lender's standard variable rate (currently 5.69% ) + 0.3% for the remainder of the term

2%

£199

Tapered charges of 3/2% of the amount being repaid for the first 2 years

No

65%

4.4% Tracker

2 Years

Lender's standard variable rate currently 4.60% for the remainder of the term

2%

£150

3% of amount being repaid for 2 years

No

65%

4.65% Fixed

Jun 30 2013

Lender's standard variable rate currently 4.74% for the remainder of the term

0%

£250

No

Free valuation up to £700 for purchases and remortgages and free legal's on remortgages only.

60%

3.15% Disc.Tracker

2 Years

Lender's standard variable rate currently 5.64% for the remainder of the term

£1750

£250

No

No

60%

4.5% Fixed

Dec 31 2012

Lender's standard variable rate currently 5.99% for the remainder of the term

0%

£295

3% of amount being repaid until 31/12/2012

Free valuation and free legals.

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Monday, May 23, 2011

According to a survey from moneysupermarket.com, 'First Time Buyers' don't expect to be able to buy a property until they are 38 years old or 48 if they live in London ( they might as well go straight for a retirement flat to save on mucking about ).

It's all a bit of nonsense for you plucked out from the pointless world of online surveys.

Pick a figure, any number, now double it, write it down, don't tell me what it is......

I suppose that it reflects the attitude of youngsters to the current economic status in this country, one bit of comfort for them is that sentiment is very changeable in the financial world.

I include this because it is regularly raised by tenants as part of their defence in deposit protection disputes.

The right to quiet enjoyment is a covenant implied into every residential tenancy agreement. It does not mean that the tenant has a right to peace and quiet, as I have heard some tenants argue.

Quiet enjoyment, in this context, means that the tenant can regard the property as their home, and the landlord is not permitted to bother the tenant unnecessarily. In particular, the landlord is required to give at least 24 hours written notice if they need to enter the property, for example to carry out some repair work or for an interim inspection.

There are exceptions, for example where emergency repairs are necessary for safety reasons, when the landlord may re-enter without notice, but other unauthorised entry is likely to infringe the tenant’s rights and may be viewed as something akin to harassment, even if you think it is justified. A good rule of thumb is never to turn up unannounced. Walking in on a student tenant in the shower never looks good in front of a judge.

Tom Derrett is the Principal of Deposit Claim, an ex-adjudicator and an expert on the Deposit Protection Schemes. Tom helps landlords to claim money through the deposit protection schemes.

Tom is an experienced deposit protection adjudicator who was unhappy at having to decide a disproportionate number of cases against landlords when he felt that they could often have won if they had presented their case properly.
In a twist on the poacher turned gamekeeper scenario, Tom set up ADR Solution, a deposit protection consultancy, to provide landlords with the advice and support necessary to win deposit disputes, at an affordable cost.

Friday, May 20, 2011

Below is a selection of the most popular buy-to-let mortgages currently available. For full information on these products, and all other buy-to-let mortgage schemes available to you, please visit www.propertyhawk.co.uk/mortgages.aspx to use the free online buy-to-let mortgage finder. If you would like to discuss your requirements with a member of the support team please telephone 029 2069 5446 or you can submit a quick enquiry directly to the team by filling in our online enquiry form.

Max LTV

Initial rate

Term

Reversionary rate

Completion fee

Booking fee

Early repayment charges

Incentives

80%

4.99% Fixed

Jul 31 2013

Lender's standard variable rate currently 4.99% for the remainder of the term

3.5% (min £595)

£0

5% of amount being repaid until 31/07/2013

No

80%

4.99% Disc.Tracker

2 Years

Lender's standard variable rate currently 5.49% for the remainder of the term

2.5%

£250

2% of original balance being repaid for 2 years

No

75%

4.99% Fixed

Jun 30 2013

Lender's standard variable rate (currently 4.60%) + 0.5% for the remainder of the term

£999

£99

5% of amount being repaid until 30/06/2013

Free valuation and free legals

75%

3.99% Disc.Tracker

2 Years

Lender's standard variable rate currently 5.64% for the remainder of the term

£2499

£250

No

No

70%

4.09% Fixed

Sep 1 2013

Lender's standard variable rate currently 4.79% for the remainder of the term

3.5%

£0

4% of the outstanding balance as of 1st January until 01/09/2013

Rapid Remortgage Legal service available from £250 (refer to New Business Team for further details)

70%

3.75% Disc.Tracker

2 Years

Lender's standard variable rate (currently 5.69% ) + 0.3% for the remainder of the term

2%

£199

Tapered charges of 3/2% of the amount being repaid for the first 2 years

No

65%

4.4% Tracker

2 Years

Lender's standard variable rate currently 4.60% for the remainder of the term

2%

£150

3% of amount being repaid for 2 years

No

65%

4.65% Fixed

Jun 30 2013

Lender's standard variable rate currently 4.74% for the remainder of the term

0%

£250

No

Free valuation up to £700 for purchases and remortgages and free legal's on remortgages only.

60%

3.15% Disc.Tracker

2 Years

Lender's standard variable rate currently 5.64% for the remainder of the term

£1750

£250

No

No

60%

3.79% Fixed

Sep 1 2013

Variable rate of BBR + 4.34% for the remainder of the term

3%

£0

3% of amount being repaid until 01/09/2013

No

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

The HSBC recently reported that 29% of British workers fear that they might be made redundant at some point during the next year. Mature public sector employees are feeling the most anxious, with 37% of people in this age group saying that they may be given the chop in the months ahead.

When it comes to the medium term, insecurity rises and the divide between the public and private sectors expands. 37% of people are of the opinion that their jobs will come under intense pressure over the next 36 months, including 40% of public sector wage earners and 35% of individuals in the private sector.

Richard Brown, Senior Savings Product Manager HSBC said, 'Obviously we are in a difficult financial period with many people feeling insecure about their job prospects and experiencing a squeeze in their standard of living.

'While this feeling of a lack of job security is particularly acute among older people in the public sector, everyone seems to be feeling the squeeze on their finances.'

This news will not be welcomed by rental property owners who are worried about tenants becoming unemployed and subsequently falling behind on the rent. It may mean that there will be an increase upon the 9.4% of rent which is currently in arrears.

Although they can't do a great deal to affect the strength of the economy, prudent landlords can safeguard their finances in this time of hardship by investing in rent guarantee insurance.

We've just had this release through for those legal eagles out there -

NOTE : We bring landlords in depth information, we're not just about 'scratching the surface', because following this new precedent we could be liable for any repairs... get it.

Court of Appeal decides that plaster forms part of the structure of a premises

On Thursday 19th June in the case of Grand v Gill [2011] EWCA Civ 554 the Court of Appeal ruled on an issue that has vexed housing practitioners for over 25 years – when a house or flat is let on a short lease governed by section 11 of the Landlord and Tenant Act 1985. does the landlord have to repair plaster damage or not?

In the first instance decision of Irvine v Moran (1992) the High Court held that the landlord did not, because it did not form past of ‘the structure’ of the premises as required by the repairing obligation contained in section 11.

John de Waal, a barrister at Hardwicke chambers, said: “Three cases in the Court of Appeal have failed to deal with the issue. Today’s decision says clearly and decisively that plaster does form part of the structure of the premises and therefore the landlord must repair it when necessary. The decision has been awaited by housing practitioners and is of great interest to local authority and social housing landlords in particular since the question comes up in tenant’s disrepair claims all the time. Until now, landlords could refuse to repair plaster or pay compensation unless the damage was caused by a relevant repairing defect. That meant, for example, that damage to plaster caused by damp which was caused poor ventilation or the lack of an effective central heating system was something for which the landlord was not liable. That position has now changed.’

The lead judgment was given by Lord Justice Rimer. Lord Justice Thomas said: “Plaster forming part of or applied to walls and ceilings is part of the structure of the premises”. Lord Justice Lloyd said: “...as a general proposition, ..plaster forming part of or applied to walls and ceilings is part of the structure of the relevant premises.”

The appeal was brought by the tenant Ms Tanya Grand against a decision of Judge Karsten QC in the Central London County Court in which he refused to award compensation for damage to plasterwork in a flat she rented from her landlord Mr Param Gill.

PropertyHawk mortgages has access to an excellent new exclusive buy-to-let mortgage with Buckinghamshire Building Society. The rate is 4.50% fixed until 31/12/2012 with free valuation, free legals and no completion fee.

Tuesday, May 17, 2011

I know I've commented in length about some of the issues that affected landlords at the peak of the buy-to-let boom. including buy-to-let fraud.

However, even I was a little shocked following a meeting with an old business friend who at one stage had an interest in estate agency.

He'd heard about several occasions where surveyors were asked by developers to provide valuations on new build apartments. The developer would then present the surveyor with an envelope stuffed with thousands of pounds and a figure written on a piece of paper slipped into the same envelope. The obvious implication being that if they compromised their professional judgement and 'valued up' he would be several thousand pounds better off. If the surveyor refused; the developers would then just move on to another agent until they found one who was prepared to accept the bribe.

These over valuations were vital for many developers to be able to sell apartments at inflated values to unsuspecting investors. Many of these property investors are now left with significant negative equity and are being kept afloat by historically low interest rates.

This is the first time I've heard first hand evidence of these sharp practices and I'd be interested to hear of any other examples.

Monday, May 16, 2011

One of the things that most surprises landlords in deposit protection claims is the willingness of adjudicators to enforce the Unfair Terms in Consumer Contract Regulations 1999. For some reason, landlords tend to think that UTCCR is not proper law, and shouldn’t be applied. The regulations are European law and are directly enforceable in England and Wales.

The Office of Fair Trading has produced some useful guidelines on the applicability of UTCCR to tenancy agreements, which I fully recommend. They are available at http://www.oft.gov.uk/shared_oft/reports/unfair_contract_terms/oft356.pdf The OFT guidance is too long and comprehensive to go into on this blog, but it is a very useful reference point, particularly for landlords looking to get an idea of the adjudicator’s likely position on a non-standard contractual provision they might be hoping to enforce against the tenant.

The actual regulations themselves are quite simple and a good example of the principle based legislation that comes out of Brussels.

There are three basic tests that the contract must pass:

The contract may not cause a significant imbalance between the obligations of the parties. i.e. It must not require the tenant to do lots and the landlord do little.

The landlord must deal fairly and openly with the consumer, and not go further than necessary to protect their commercial interests.

The agreement must be in plain language, that can be readily understood by a layperson, not just a lawyer.

The regulations apply to contracts between a business (landlord) and a consumer (tenant)., but may not apply if the contract can be shown to be individually negotiated. The regulations do not apply to the amount of rent payable, or to what makes up the property.

A real world example of an unfair term that was not allowed by an adjudicator is a clause requiring the tenant to completely redecorate the property at the end of the tenancy, regardless of whether the property required it, because it requires the tenant to spend a lot of money doing something that is potentially unnecessary, while the landlord isn’t required to do anything.

Tom Derrett is the Principal of Deposit Claim, an experienced deposit protection adjudicator and an expert on the Deposit Protection Schemes. Tom helps landlords to claim money through the deposit protection schemes.

Tom is an experienced deposit protection adjudicator who was unhappy at having to decide a disproportionate number of cases against landlords when he felt that they could often have won if they had presented their case properly.
In a twist on the poacher turned gamekeeper scenario, Tom set up ADR Solution, a deposit protection consultancy, to provide landlords with the advice and support necessary to win deposit disputes, at an affordable cost.

If you think we've had it bad in the UK with a depressed housing market. Spare a moment for the poor old Irish.

Since topping out in early 2007 apartment prices in Dublin are now down by a massive 52% according to the latest figures released by the Irish Central Statistics Office. Ouch! The average house price is down by a paltry 40% according to data released on Friday.

Whats more is that prices continue to fall with the monthly rate of decline increasing in both February and March of this year according to 8 of the biggest lenders.

Some adventurous property investors see this as a time to invest as exhibited by the popularity of the recent Allsop residential auction in Dublin.

Despite the success I can't see property investors getting excited enough to "Jump Around" as they did during the prior decade. More a case of "House of Pain" for the next few years at least.

Saturday, May 14, 2011

The latest Allsop auction is due to get under way on the 26th May at the Park Lane Hotel, Piccaddilly.

A new addition to the catalogue is Lot 89D - 447-453 New Cross Road, New Cross, London SE14 6TA. The Guide Price £300,000+ and there are 7 Freehold Flats Two Flats subject to Assured Shorthold Tenancies Four Flats subject to Tenancies on Terms Unknown.

The sale is on the instructions of J Gershinson FRICS and S Davidson MRICS of Allsop LLP acting as Joint Fixed Charge Receivers.

The property is situated on the north side of New Cross Road between its junction with Mornington Road and Watsons Street. Local amenities are readily available in Deptford close by with more extensive facilities to be found in Lewisham approximately 1 mile to the south-east. Rail services run from New Cross Station. Road access is provided by the A2 (New Cross Road) with the open spaces of Margaret Macmillan Park and Fordham Park close by. Goldsmiths College is within ¼ mile to the west.The property comprises seven flats situated within the upper parts of a terrace building. Two flats are subject to Assured Shorthold Tenancies, four flats are subject to tenancies on terms unknown and one flat vacant.

The Express columnist puts forward the argument that the number of students entering university will fall and alongside this the number of student opting for their local university to save on living costs will be a double hit on the demand for student accommodation.

There is a point here and one that student landlords looking to expand their portfolio might need to consider.

Below is a selection of the most popular buy-to-let mortgages currently available. For full information on these products, and all other buy-to-let mortgage schemes available to you, please visit www.propertyhawk.co.uk/mortgages.aspx to use the free online buy-to-let mortgage finder. If you would like to discuss your requirements with a member of the support team please telephone 029 2069 5446 or you can submit a quick enquiry directly to the team by filling in our online enquiry form.

Most popular buy-to-let mortgages

Max LTV

Initial rate

Term

Reversionary rate

Completion fee

Booking fee

Early repayment charges

Incentives

80%

4.99% Fixed

Jul 31 2013

Lender's standard variable rate which is currently 4.99% for the remainder of the term

3.5% (min £595)

£0

5% of amount being repaid until 31/07/2013

No

80%

4.99% Disc.Tracker

2 Years

Lender's standard variable rate which is currently 5.49% for the remainder of the term

2.5%

£250

2% of original balance being repaid for 2 years

No

75%

4.99% Fixed

Jun 30 2013

Lender's standard variable rate (currently 4.60%) + 0.5% for the remainder of the term

£999

£99

5% of amount being repaid until 30/06/2013

Free valuation and free legals

75%

3.99% Disc.Tracker

2 Years

Lender's standard variable rate which is currently 5.64% for the remainder of the term

£2499

£250

No

No

70%

4.49% Fixed

Sep 1 2013

Lender's standard variable rate which is currently 4.79% for the remainder of the term

3.5%

£0

4% of the outstanding balance as of 1st January until 01/09/2013

Rapid Remortgage Legal service available from £250 (refer to New Business Team for further details)

70%

3.75% Disc.Tracker

2 Years

Lender's standard variable rate (currently 5.69% ) + 0.3% for the remainder of the term

2%

£199

Tapered charges of 3/2% of the amount being repaid for the first 2 years

No

65%

4.4% Tracker

2 Years

Lender's standard variable rate which is currently 4.60% for the remainder of the term

2%

£150

3% of amount being repaid for 2 years

No

65%

4.75% Fixed

Jun 30 2013

Lender's standard variable rate which is currently 4.74% for the remainder of the term

0%

£250

No

Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.

60%

3.15% Disc.Tracker

2 Years

Lender's standard variable rate which is currently 5.64% for the remainder of the term

£1750

£250

No

No

60%

3.99% Fixed

Jun 1 2013

Variable rate of BBR + 4.24% for the remainder of the term

3%

£0

3% of amount being repaid until 01/06/2013

No

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

According to the latest answer to a Parliamentary Question in the House of Commons Grant Shapps is keeping a close eye on the performance of the Tenancy Deposit Scheme providers against key performance indicators.

It would be interested in seeing what landlords think about the performance of the selected Tenancy Deposit Schemes. I have only used the custodial scheme provided by the Deposit Protection Service which generally I have found pretty easy to use.

What are you thoughts on this and the alternative schemes? One of my questions would be couldn't we have more providers. Surely this would help to drive down costs?

Propertyhawk mortgages has access to an exclusive buy-to-let product with Hinckley & Rugby Building Society. The 3.15% 2 year discount is a market-leader in the 60% LTV bracket and could be an excellent choice for your landlord clients.Propertyhawk mortgages - search whole market - no fees

Monday, May 09, 2011

This is one that always comes up in the training courses I run for inventory companies. Betterment is an insurance principle, and it essentially means that you cannot claim for more than you have lost.

A good example of betterment in action is in car insurance. If you buy a brand new motorcar and after six months of driving it it is written off, you are not normally entitled to a brand new car as a replacement. A brand new car would be worth more than the six month old car that you have lost, and if the insurance company were to buy you one, you would be better off than you were to begin with. The insurance company will only allow you to claim for what you have lost and will give you something akin to the market value of your six month old car.

The deposit protection schemes, in accordance with industry best practice, will employ the principle of betterment when assessing your claim. A common way to award betterment is to calculate an annual depreciation value (the cost of a replacement item new divided by the number of years reasonable lifespan), and multiply that by the number of years use you have been deprived of.

(Replacement cost / reasonable lifespan) x years use lost

So a claim for an £800 carpet, ruined after just 3 years, that might be expected to last 10 years in a rental property would be valued at £560.

(800/10) x 7 = 560

The depreciation value of the carpet in the above example is £80 per year. The landlord has lost 7 years of useful life from the carpet.

Tom Derrett is the Principal of Deposit Claim, an experienced deposit protection adjudicator and an expert on the Deposit Protection Schemes. Tom helps landlords to claim money through the deposit protection schemes.

Tom is an experienced deposit protection adjudicator who was unhappy at having to decide a disproportionate number of cases against landlords when he felt that they could often have won if they had presented their case properly.
In a twist on the poacher turned gamekeeper scenario, Tom set up ADR Solution, a deposit protection consultancy, to provide landlords with the advice and support necessary to win deposit disputes, at an affordable cost.

According to leading buy-to-let mortgage lender the Landlord Centre their latest quarterly survey reveals that tracker mortgages are the most popular of all loan applications being made by landlords. Andy Young, chief executive at Landlord Centre comments on the Index’s findings:

“During the course of last year fixed rates were a more popular choice by landlords, making up 63% of applications in the last quarter of 2010, with just 37% of applications for variable rates. However, this preference appears to be changing as the Bank of England base rate has remained at its historical low of 0.5% throughout the first quarter of 2011.

“During Q1, 52% of applications were for variable rates, perhaps reflecting opinion that any interest rate changes during the year will be small. There have also been some very attractive discounted rates available via a number of regional building societies, resulting in an influx of applications for these products. Interestingly the average rates chosen during the period increased slightly. The average fixed rate was 5.00% (up 0.24%) and the average variable rate was 4.20% (up 0.13%). However, one set of results is not sufficient to tell whether this is a developing trend or just a minor deviation compared with the previous quarter.”

Sunday, May 08, 2011

We have all seen whats happened when hot money goes in search of the next big thing:

First there was the tech boom, this morphed into the property boom as the US fed forced down interest rates inorder to prevent an economic crash following the bubbles burst in 2000. Now it's a gold and the commodity boom.

Looking at this gold price graph it has remarkable similarities to that showing house prices until the bubble burst in 2007.

Personally, I rather be invested in bricks and mortar rather than holding a couple of blocks of shiny metal. At least you get a nice rising rental income and people will always need a place to live. When the gold bubble goes pop the lustre will very quickly disappear from this mineral and paradoxically the investment that was going to protect investors from capital loss with be the source of an almighty financial loss.